FY 23 budget in O’Fallon shows improving revenue following COVID-19 crisis

The O’Fallon FY23 budget indicates a stable revenue that is improving, reflecting sources bouncing back after the COVID-19 health crisis, according to city officials.

There are no major cuts in programs.

The $104.7 million budget, as approved Monday, April 18, at the O’Fallon City Council, will go into effect May 1. The council vote was 12-1, with Alderman Dan Witt voting no.

That is a 7% increase mostly due to the $4.2 million in the American Recovery Plan Act funds, which includes $6,142,000 in capital projects in the Build O’Fallon Trust Fund. Public safety salaries and parks department improvements were earmarked.

The ARPA is to be used to recoup some of the lost revenue accrued during the pandemic. The city’s businesses, departments and residents all took major hits, especially with the hotel/motel revenues because no one was traveling. The parks department couldn’t host sports tournaments, in line with the state restrictions. The loss of those tax-generating sources is documented.

The city was able to tap reserves and not cut services. Based on the rules given for uses of the funds, the city decided to put the funds in the general fund.

At the budget hearing beforehand, a resident spoke on concerns over the ARPA funds, which citizens have mentioned in public comments at several prior council meetings. They have expressed concern it is not being used as intended and that the city did not involve the public in the decisions.

“It rescues no one,” the citizen said.

Critics argue the funds are taxpayer dollars. The final rule allows cities under 50,000 population to assume a standard revenue loss based on population.

In O’Fallon, half the money came in September 2021 and the other half to follow this summer.

This is the treasury’s overview of the final rule: https://www.google.com/url?sa=t&source=web&rct=j&url=https://home.treasury.gov/system/files/136/SLFRF-Final-Rule.pdf&ved=2ahUKEwiv2NWrqp73AhVTmIkEHaENDF4QFnoECAYQAQ&usg=AOvVaw3oL0yNYAqQEHB73ynluDSs

The resident said even if the council approved the 2023 budget, it could still be amended at any time.

The public hearing closed after seven minutes, without further comments.

Because of talks with residents, the budget now includes a new program where the city will work with several O’Fallon churches and organizations — such as the St. Vincent de Paul Society — to assist local families who need help with utility bills.

The city added $25,000 to the budget to assist with water or sewer bills for qualified families and will set aside $25,000 to assist O’Fallon residents with Ameren Illinois utility bills.

The city will match pledges by paying 50% of the costs and the other entity — church or organization — will pay the remainder. The requests will be vetted by the charitable groups.

Alderman Nathan Parchman, chair of the finance committee, said last week the city’s help will mean the churches and organizations can help more people than they would just with their funds.

‘Tourism was decimated’

In a separate interview, Parchman explained the city lost about $6 million in revenue from restaurants, hotels, and businesses during the early years of the pandemic,

“Tourism was decimated,” he said.

But sales tax from the big-box stores is up slightly, and revenue is improving. And the ARPA funds will be used over several years.

He pointed out the city has many unfunded projects, which the strategic plan and master plan identify.

“There is nothing we’re trying to hide,” he said.

Other council action

The council advanced plans to prohibit parking times on East First Street from Vine to Lincoln on Saturdays when the expanding Vine Street Market is open. This is to allow for vendors to use 14 parking spaces along the north side of the Chamber of Commerce Building.

The ordinance, set for approval May 2, will restrict parking from May to October on Saturdays from 2-8 a.m.

They also moved forward an ordinance amendment that would allow the police to remove vehicles illegally parked from a restricted, or “no parking” area.

Public works and public safety departments will ensure proper signage and a present more information to the public prior to enforcement.

More from the city council

The council agreed to O’Fallon Fire Department donating surplus property to the Long Lake Volunteer Fire Department — a 1980 Dunbar trailer with a mounted fire service slide pole, which the department no longer plans to utilize during its annual open house.

The council OK’d establishing the Westbrook Center, located on West State Street between Willow Drive and Spruce Street. Joseph Moerchen, on behalf of Christa Trelow, property trustee, had filed a petition requesting a minor subdivision on 2.72 acres, so the vacant parcel could be divided into two lots.

Mayor Herb Roach announced Waste Management has donated $5,000 to the all-abilities playground the parks department hopes to install this year.